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Global Digital Transformation Survey Report Industry Report: IT and COMMUNICATIONS
Digital Transformation Delivering Business Outcomes
Introduction: The IT and communications industry and digital transformation …………..………………………..….. 3
Key findings …………………………………………………………………………………………………………………………………………….…………. 4
What is the focus of digital transformation? …………………………………………………………………………………………………… 5
How advanced are organisations on their digital journey? …………………………………………………………………….……… 6
What are the benefits of digital transformation? …………………………………………………………………………………….….... 7
What are the key success factors and inhibitors in digital transformation? …………………………………………….….. 8
How important is a strong technology partner for digital transformation? …….………………………………………….… 9
What is the potential of Artificial Intelligence? ………………………………………………………………………………………………. 10
What are the key skills and capabilities required in the digital era? …………………………………………………….…….… 11
Contents
Global Digital Transformation Survey Report: IT and Communications
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This report contains analysis of the IT and communications industry data from the 2017 Fujitsu Global Digital Transformation Survey. The research
was conducted to find out more about how business leaders are responding to digital transformation challenges, and to identify what initiatives
they are undertaking in the area. We received 1,614 responses from business leaders across 15 countries, including 195 responses from the IT and
communications industries.
Digital technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) are being embedded into core value-generation processes in
business and society, transforming people’s work and daily lives and generating innovation. This is digital transformation. Business leaders around
the world are becoming aware of the power of digital transformation, and taking action to realise its huge potential.
Today, digital technologies are moving into the heart of everything we do, changing the way businesses and people work, how they live and how
they innovate. In the new digital society, digital transformation and digital co-creation become business norms. Digital co-creation means blending
your business expertise and digital technology, and creating new value – together with ecosystem partners and customers – to shape a better future.
Digital transformation initiatives usually start from the testing phase, then a Proof of Concept (PoC) and a Proof of Business (PoB) phase, and then
shift to the implementation phase. But new technology alone is not sufficient for digital transformation. New talents, and people who have different
skills and innovative ways of doing things, are required. Leadership, agility and co-creation with partners are very important elements.
Introduction: Digital transformation in IT and communications
The theme of the Global Digital Transformation Survey is aligned with the story of Fujitsu
Technology and Service Vision, which sets out our vision and insights into how business
leaders can leverage digital transformation in business and society, enabling and
creating a better future.
The Fujitsu Technology and Service Vision can be downloaded from the following link:
URL: http://www.fujitsu.com/global/vision/
Global Digital Transformation Survey Report: IT and Communications
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• Workstyle transformation is the top functional area for digital transformation in organizations in the IT and communication
industry, with 51.3% of organizations reporting projects in that area.
• The most positive outcome of digital transformation is increased revenue, with almost half (47.6%) of respondents reporting
this as the most positive outcome. Many organizations also report increased strengthened relationship with customers (41.3%)
and strengthened competitiveness of products (28.7%).
• Key factors in delivering digital transformation are talented staff with the right skills (24.7%), streamlined organizations and
processes (21.2%) and strong leadership (15.3%).
• Almost a third (31.3%) of IT and communications leaders say it is important to have a strong technology partner to achieve
digital transformation. They believe these technology partners need to have strong technological capability (22.6%) and an
alignment with the organization’s vision and strategy (20.0%).
• Most respondents believe that artificial intelligence (AI) represents an opportunity (84.1%), rather than a threat (just 6.2%).
More respondents (85.1%) believe that AI will enhance people’s capabilities in the future, but 73.3% believe that jobs may be
displaced.
• Business leaders in the IT and communications industry believe that professional knowledge of digital technologies is the most
important capability needed in the digital era. It was rated the most important capability by 21.5% of respondents. This was
followed by a professional knowledge of specific business functions digital technologies and creativity and imagination (both
15.4%).
Global Digital Transformation Survey Report: IT and Communications
Key findings
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Digital transformation is undertaken in many functional areas. The survey asked IT and
communications industry business leaders about the extent to which digital transformation
has been implemented in four key cross functional business infrastructure areas common to
most organizations: marketing, work style transformation, operations and maintenance,
and call centers.
Of these functions, digital transformation is the most likely to take place in workstyle
transformation , reported by 51.3% of respondents. Marketing (37.9%), operations and
maintenance (37.4%) and call centers (32.3%) are also areas in which a significant amount
of digital transformation is taking place.
The survey also asked about the status of digital transformation in more specific functions:
logistics, finance, manufacturing, and others specific to the IT and communications industry.
More than a quarter (26.2%) of companies in the IT and communications industry have
implemented or are implementing digital transformation process in logistics. This was
followed by 24.6% who reported other industry-specific transformations. Also mentioned
were manufacturing (13.8%) and finance (12.8%).
Global Digital Transformation Survey Report: IT and Communications
51.3%
37.9%
37.4%
32.3%
Workstyle
Marketing
Operations andMaintenance
Call Centre
What is the functional focus of your digital transformation? (cross-functional)
26.2%
24.6%
13.8%
12.8%
Logistics
Other Industry-Specific
Manufacturing
Finance
What is the functional focus of your digital transformation? (specific functions)
What is the focus of digital transformation?
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The highest level of delivered digital transformation
outcomes in the IT and communications industry is in
marketing (40.5%), workstyle (37.0%) and call center
(33.3%).
Nearly one third (30.1%) of operations and
maintenance projects have been delivered, and
21.9% of industry-specific projects.
(Note that this chart aggregates the industry-specific
areas on the previous chart.)
The results indicate that digital transformation is
advanced amongst organizations in the IT and
communications industries. The great majority of
projects are in the process of being implemented or
have delivered on their outcomes, with some in the
testing phase and relatively few in the planning
phase.
Global Digital Transformation Survey Report: IT and Communications
12.3%
40.5%
37.0%
33.3%
30.1%
21.9%
33.8%
31.0%
27.0%
34.2%
36.4%
16.2%
21.0%
33.3%
23.3%
34.4%
9.5%
11.0%
6.3%
7.3%
Marketing
Workstyle
Call Centre
Operations andMaintenance
Specific functions
Which best describes the progress of the digital transformation?
Outcomes have been delivered Implementing Testing Planning
How advanced are organisations on their digital journey?
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The survey asked IT and communications industry
business leaders what kind of outcomes have been
delivered through their digital transformation projects.
Almost half (47.6%) say that the greatest benefit of
digital transformation has been increased revenue.
41.3% say it has strengthened relationship with
customers and 28.7% say that it has strengthened the
competitiveness of products.
Other benefits are improved efficiency or reduced cost
(25.2%), transformed business models or processes
(24.5%) and improved employee satisfaction (13.3%).
The results indicate the many benefits of digital
transformation in the IT/Communications industry. The
effects are felt across the organization, not just on the
bottom line.
47.6%
41.3%
28.7%
25.2%
24.5%
13.3%
Increased revenue
Strengthened relationship withcustomers
Strengthened competitiveness ofproducts
Improved efficiency, or reduced cost
Transformed business models orprocesses
Improved employee satisfaction
Which outcomes has digital transformation delivered to your organization?
Global Digital Transformation Survey Report: IT and Communications
What are the benefits of digital transformation?
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Digital transformation is not just about introducing new
technologies. In order to deliver successful outcomes,
organizations need streamlined processes, talented staff
and the right culture.
The survey asked IT and communications industry
business leaders what they believed to be the key factors
for successful digital transformation. At the top of the list
is talented staff with the right skills (24.7%), followed by
streamlined organizations and processes (21.2%), strong
leadership (15.3%), support by technology partners
(11.8%) and the creation of a culture for the
transformation (9.4%).
The survey also asked about which factors hindered
digital transformation. The most often mentioned was a
lack of: talented staff with the right skills (19.8%), agility
in the organization (16.0%) and leadership (12.3%).
Fear of change or internal resistance (11.8%) and an
unclear ROI (8.0%) were also mentioned.
24.7%
21.2%
15.3%
11.8%
9.4%
Talented staff with the right skills
Streamlined organizations andprocesses
Strong leadership
Supported by technology partners
Created a culture for thetransformation
Which factors were key in delivering digital transformation outcomes?
19.8%
16.0%
12.3%
11.8%
8.0%
Lack of talented staff with theright skills
Lack of agility in theorganization
Lack of leadership
Fear of change or internalresistance
ROI is unclear
Which factors hindered the progress of digital transformation?
Global Digital Transformation Survey Report: IT and Communications
What are the key success factors and inhibitors in digital transformation?
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Success in digital transformation requires cooperation with external partners. Business leaders in the IT and communications industry were asked which types of partners were most important.
The most highly rated were technology partners, ranked as most important by nearly one third (31.3%) of respondents. Other important partners were sales partners (14.4%), suppliers (11.3%) and consulting firms (10.3%).
Respondents were also asked about what they expect from a technology partner. The most important attributes are technological capability (22.6%) and an alignment with the organization’s vision and strategy (20.0%).
Trust for collaboration (16.9%) and a strong understanding of the organization’s business (15.9%) were also mentioned
31.3%
14.4%
11.3%
10.3%
9.2%
7.7%
5.1%
4.6%
3.1%
1.5%
Technology partners
Sales partners
Suppliers
Consulting firms
Startup companies
Companies in the same industry
Government organizations
Academic and research institutions
Companies in other industries
Consortiums
Which partners are important to collaborate with for digital transformation?
22.6%
20.0%
16.9%
15.9%
7.7%
7.2%
4.1%
3.6%
Technological capability
Alignment with your vision and strategy
Trust for collaboration
Understanding of your business
Consulting capability
Speed of response and implementation
Quality of products or services
Experience and track record
What do you expect from a technology partner for digital transformation?
Global Digital Transformation Survey Report: IT and Communications
How important is a strong technology partner for digital transformation?
9
The survey asked IT and communications business leaders three questions about perceptions of artificial intelligence (AI).
Of the respondents surveyed, 84.1% see AI as an opportunity, with just 6.2% seeing it as a threat. But there is some ambivalence about its effects.
Most survey respondents strongly agree (36.4%) or agree (48.7%) that AI will enhance people’s capabilities in future, but they also believe that AI will be used for work currently performed by people (25.1% strongly agree, 48.2% agree).
Global Digital Transformation Survey Report: IT and Communications
Is AI an opportunity or a threat?
Opportunity
84.1%
Threat
6.2%
Neither
9.7%
Will AI enhance people's capabilities in the future?
Strongly agree, Agree
85.1%
Neither agree nor disagree
11.8%
Strongly agree
36.4%
Agree
48.7%
Disagree
2.1% Strongly disagree
1.0%
Will AI substitute for people's work in the future?
Strongly agree, Agree
73.3%
Neither agree nor disagree
21.5%
Strongly agree
25.1%
Agree
48.2% Disagree
5.1%
What is the potential of Artificial Intelligence?
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Business leaders in the IT and communications industry believe that a professional knowledge of digital technologies is the most important capability needed in the digital era. It was rated the most important capability by nearly one quarter (21.5%) of respondents.
Next most important is a professional knowledge of specific business functions (15.4%). Equally as important is creativity and imagination (15.4%).
Other important capabilities are knowledge of specific industry (14.4%) and the liberal arts (11.3%).
The range of capabilities mentioned indicates that while there is a heavy focus on professional knowledge, there is also a strong perception that a balance of skills is required to drive digital transformation – it is not just about technical capabilities.
21.5%
15.4%
15.4%
14.4%
11.3%
10.3%
5.1%
3.6%
2.1%
0.5%
Professional knowledge of digitaltechnologies
Professional knowledge of specificbusiness function
Creativity and imagination
Professional knowledge of specificindustry
Liberal arts (humanities, socialscience, natural science)
Logical and analytical capability
Judgement and decision-makingcapability
Leadership
Communication capability andempathy
Craftsmanship
What are the most important capabilities people need in the digital era?
Global Digital Transformation Survey Report: IT and Communications
What are the key skills and capabilities required in the digital era?
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Survey topics:
Current awareness of digital transformation: Fields, progress, outcomes, factors behind success, issues
Co-creation in digital businesses: Required partners, elements required of technology partners
AI (artificial intelligence) awareness: Perspective on AI, skills required during the digital era
Survey method:
Online
Fieldwork period:
February 2017
Survey respondents:
Company size: Medium and large (at least 100 employees and sales of at least USD 1 million during the previous FY)
Respondents: Management (CEOs, CMOs, CFOs, CIOs, CDOs, CSOs) and decision-makers equivalent to management
Sample composition and size:
The survey was of 1,614 business leaders in 15 countries, 9 of which were separately analyzed and across 18 industry sectors, 6 of which were separately analyzed.
Countries surveyed were:
Americas: Canada (56)
Europe: Finland (56), Germany (103), France (103) Spain (103), Sweden (52), United Kingdom (103)
Asia: China (103), Indonesia (52), Japan (309), Republic of Korea (55), Singapore (103), Thailand (52)
Oceania: Australia (106)
Major industries surveyed were:
• Construction (113), Finance/Insurance (138), IT/Communications (195), Manufacturing (314), Medical/Health/Welfare (100) and Wholesale/Retail (137).
Download the Global report at: http://www.fujitsu.com/global/microsite/vision/insightful-stories/survey1/
About the survey
Global Digital Transformation Survey Report: IT and Communications 12
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